Is This Bottom Line Beat Enough for Netflix Investors?
Netflix reported better than expected quarterly results and rosy earnings guidance after markets closed Tuesday.
Netflix Inc. (NASDAQ: NFLX | NFLX Price Prediction) reported its most recent quarterly results after markets closed Tuesday. The firm said that it had $1.30 in earnings per share (EPS) and $5.47 billion in revenue, compared with consensus estimates that called for $0.53 in EPS and $5.45 billion in revenue. The fourth quarter of last year reportedly had $0.30 in EPS and $4.19 billion in revenue.
During the fourth quarter, global net subscription additions totaled 8.76 million. In the United States, Netflix added 0.42 million memberships. Internationally, the firm added roughly 8.33 million memberships.
Note that Netflix now has a total of 167.09 million total memberships worldwide.
Looking ahead to the first quarter, the company is calling for $1.66 in EPS on $5.73 billion in revenue. At the same time, the company is expecting to see net subscriber adds of 7 million. There are consensus estimates calling for $1.19 in EPS on $5.76 billion in revenue.
Reed Hastings, board chair and CEO of Netflix, commented:
During December, we also launched The Witcher, which is tracking to be our biggest season one TV series ever. Through its first four weeks of release, 76 million member households chose to watch this action-packed fantasy, starring Henry Cavill. As a testament to how our hit content can penetrate the global zeitgeist and influence popular culture, the show’s launch drove up sales of The Witcher books and games around the world, and spawned a viral musical hit.
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Shares of Netflix closed at $338.33, in a 52-week range of $252.28 to $385.99. The stock has a consensus price target of $363.21. Following the announcement, the stock was initially down 2.7% at $328.85 in the after-hours trading session.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
